Liquidity remains critically constrained with cash reserves plummeting to $178,321, while the operating cash flow to net income ratio of -0.12 suggests a persistent disconnect between accounting losses and actual cash generation.
| Cash from Operations | -1.34M | -6.31M | -1.02M | 485.97K | 5.26M | 3.91M | 4.41M |
| Operating CF Margin % | -5.96% | -17.05% | -3.24% | 1.38% | 18.96% | 21.56% | 36.12% |
| Operating CF Growth % | 78.71% | -518.95% | -309.88% | -90.75% | 34.5% | -11.42% | - |
| Net Income | -27.54M | 12.6M | 10.55M | 12.77M | 10.18M | 7.1M | -7.18M |
| Depreciation & Amortization | 1.1M | 1.51M | 1.38M | 1.47M | 1.4M | 1.07M | 638.1K |
| Stock-Based Compensation | 17.47M | 0 | 0 | 0 | 0 | 0 | 0 |
| Deferred Taxes | -53.5K | 32.77K | 0 | -143.32K | -45.38K | 0 | 0 |
| Other Non-Cash Items | 884.64K | 1.25M | 1.11M | 433.58K | 286.05K | -613.53K | 12.93M |
| Working Capital Changes | 6.79M | -21.7M | -14.05M | -14.05M | -6.57M | -3.65M | -1.98M |
| Change in Receivables | 5.35M | -17.8M | -9.67M | -14.1M | -3.49M | -3.76M | 59.31K |
| Change in Inventory | 260.28K | -187.54K | 113.66K | 1.57M | -2.2M | -61.28K | -392.08K |
| Change in Payables | 483.94K | 727.8K | 0 | -100.93K | 274.31K | 0 | 0 |
| Cash from Investing | -42.31K | -2.85M | -2.64M | -5.92M | -1.39M | -2.17M | 1.18M |
| Capital Expenditures | -42.31K | -2.85M | -2.64M | -5.91M | -1.39M | -655.35K | -983.78K |
| CapEx % of Revenue | 0.19% | 7.7% | 8.39% | 16.84% | 5.01% | 3.62% | 8.06% |
| Acquisitions | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Investments | - | - | - | - | - | - | - |
| Other Investing | 0 | 0 | 0 | -12.16K | 561 | -1.52M | 2.17M |
| Cash from Financing | -1.39M | 10.72M | 3.46M | 4.41M | -1.93M | -899.08K | -5.72M |
| Debt Issued (Net) | -2.16M | 10.31M | 2.35M | 4.46M | -88.58K | -269.62K | -395.09K |
| Equity Issued (Net) | 0 | 2.9M | 0 | 0 | 0 | 0 | 0 |
| Dividends Paid | 0 | 0 | 0 | 0 | -5.43M | 0 | 0 |
| Share Repurchases | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Financing | 763.62K | -2.49M | 1.11M | -46.4K | 3.59M | -629.46K | -5.32M |
| Net Change in Cash | -2.4M | 1.46M | -200.44K | -1.32M | 1.96M | 850.81K | 220.45K |
| Free Cash Flow | -1.39M | -9.17M | -3.66M | -5.47M | 3.87M | 3.25M | 3.43M |
| FCF Margin % | -6.15% | -24.75% | -11.63% | -15.58% | 13.95% | 17.94% | 28.06% |
| FCF Growth % | 84.88% | -150.56% | 33.1% | -241.39% | 18.94% | -5.12% | - |
| FCF per Share | -0.05 | -0.36 | -0.48 | -0.76 | 0.54 | 0.45 | 0.48 |
| FCF Conversion (FCF/Net Income) | 0.05x | -0.51x | -0.10x | 0.04x | 0.45x | 0.55x | -0.61x |
| Interest Paid | 737.67K | 497.25K | 261.32K | 243.84K | 90.08K | 95.9K | 92.78K |
| Taxes Paid | 836.58K | 1.84M | 0 | 1.44M | 3.91M | 0 | 0 |
Existential liquidity and solvency
According to recent financial statements, BDMD's operating cash flow to net income ratio of -0.12 in 2025Q4 highlights a profound disconnect between accounting losses and cash generation, suggesting that the company's reported earnings are not currently supported by underlying cash inflows from its core medical device operations.
The persistent divergence between net income and operating cash flow suggests that accrual-based accounting metrics may be masking the severity of the company's cash burn. Investors should monitor whether this gap reflects aggressive revenue recognition or simply the inability of the business to convert its high-margin product sales into actual liquidity.
As reported in the latest filings, BDMD's free cash flow trajectory has been erratic, swinging from a $4.7 million outflow in 2024Q4 to a $1.9 million inflow in 2025Q4, which indicates that the company lacks a stable or predictable mechanism for generating sustainable internal funding.
While the 2025Q4 positive free cash flow figure may appear encouraging, it appears largely driven by working capital fluctuations rather than operational efficiency. This volatility warrants further investigation into whether the company can maintain positive cash generation without compromising its long-term growth initiatives.
Based on the provided data, the $5.7 million working capital inflow in 2025Q4 stands in stark contrast to the $16.3 million outflow observed in 2024Q4, suggesting that BDMD's cash position is highly sensitive to the timing of distributor payments and inventory management cycles within the Chinese market.
These massive swings in working capital suggest that the company's cash flow is heavily dependent on the timing of receivables collection, which may be unreliable. Such instability implies that the company's liquidity position is subject to external distributor behavior rather than internal operational control.
As indicated by the negligible $2,300 in capital expenditures reported for 2025Q4, BDMD has effectively halted investment in its asset base, which may suggest a defensive posture aimed at preserving the company's extremely limited cash reserves rather than funding future product development or capacity expansion.
The near-zero capital intensity appears to be a reaction to the company's severe liquidity constraints rather than a strategic choice. This lack of investment may impair the company's ability to maintain its competitive edge in the specialized microwave ablation market over the medium term.
Quick answers to the most common questions about buying BDMD stock.
Baird Medical Investment Holdings Limited (BDMD) generated $-1.3M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
Baird Medical Investment Holdings Limited (BDMD) reported negative free cash flow of $1.4M in 2025, indicating capital requirements exceeded cash from operations.
Baird Medical Investment Holdings Limited (BDMD) spent $0.0M on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.